NVIDIA's Hugging Face buyout could net Kevin Durant $60M profit
What's the story
NBA superstar Kevin Durant is set to make a killing from his early-stage investments in AI start-up Hugging Face. The company, which NVIDIA is buying for some $12.93 billion, could turn Durant's total $250,000 investment into profits of over $60 million. The windfall comes from the massive appreciation of Hugging Face's value following the acquisition deal.
Investment details
Durant's multi-stage investment in Hugging Face
Durant's investment in Hugging Face wasn't a one-time affair. The NBA star and his longtime business partner Rich Kleiman invested through their firm, Thirty Five Ventures.
According to sports-business investor Joe Pompliano, Durant made a $100,000 seed investment in 2018 and another $150,000 Series A investment in 2019.
These investments could yield over $60 million after NVIDIA's acquisition of Hugging Face.
Company growth
Hugging Face's early days and initial funding rounds
When Durant invested in Hugging Face, the company was still evolving as an AI platform.
Founded in 2016, it initially offered a chatbot for users to interact with an artificial 'best friend.'
In 2018, Hugging Face raised $4 million in seed funding with Durant as one of the investors. The company later pivoted toward open-source AI and machine learning tech, raising $15 million in Series A funding in December 2019.
Market impact
NVIDIA's massive acquisition of Hugging Face
NVIDIA's acquisition of Hugging Face for about $12.93 billion is one of the biggest deals in the AI space.
The tech giant will pay around $11.9 billion to Hugging Face shareholders and use the remaining $1 billion for an equity-based retention program.
Hugging Face is a major player in the open-source AI space, providing models, datasets, and applications to developers.
Diverse investments
Other investments by Durant through Thirty Five Ventures
Beyond Hugging Face, Durant has invested in several companies across different sectors through Thirty Five Ventures.
His portfolio includes tech and consumer companies such as Whoop, Coinbase, Postmates, Robinhood, and Acorns.
An early investment in Whoop was worth some $125 million when he invested in it and later ballooned to $10.1 billion.